Reborn since 1993

Chapter 578 Red Temperature
When everyone around is in a state of frenzy, it is difficult for an individual to make his own judgment and he basically just goes with the flow.

At present, there is such a fanatical attitude towards Dongling Hi-Tech concept stocks, and an announcement from Sichuan Rong Electronics has completely ignited this enthusiasm.

Dongling Hi-Tech placed such a large order with its parts suppliers, and it is obvious that its sales forecast for the Shenzhou Electronic Dictionary may have far exceeded outside expectations.

"Chuanrong Electronics announced that it will issue 5 million shares to raise 400 million yuan to purchase new production lines and increase production capacity!"

"The major shareholder of Chuanrong Electronics, and also the family of Jin Shengmao, the founder of Chuanrong Electronics, announced the sale of 500,000 shares, cashing in 30 million yuan, which will be used to pay bonuses to Chuanrong Electronics executives and important technical personnel!"

"An important figure at Chuanrong Electronics claimed that he had received information from the logistics department of Dongling Hi-Tech that the parts Dongling Hi-Tech will use for Shenzhou Electronic Dictionary next year may increase by 300% to 400% compared to this year!"

In the stock market, Chuanrong Electronics released several announcements at once, including huge financing and cashing out by the founder's family.

But it did not affect the stock price of Chuanrong Electronics at all, instead it kept rising. The family of the founder of Chuanrong Electronics was actually testing as well. After all, the stock price of Chuanrong Electronics had doubled, and the Jin Shengmao family was a little unsure about the rise, so they wanted to cash out some of the stocks.

As for the Jin family, no one knew how the market would react after they cashed out 500,000 shares, but it seemed that there was no ripple at all.

In the first half of this year, when the A-share market was not doing well, any company would have dared to do these things and the money would have been lost long ago.

But now, no matter whether it is financing or cashing out, the stocks flowing out of Sichuan Rong Electronics were instantly taken over by someone.

Because it was expected. The popularity of Shenzhou Electronic Dictionary far exceeded expectations. Not only Chuanrong Electronics, but also other Dongling Hi-Tech component suppliers have issued announcements that the production capacity of components supplied to Shenzhou Electronic Dictionary will increase several times next year!
For the leeks, aren't these good news? With these orders, are they still worried that the stock prices of companies like Sichuan Rong Electronics won't rise?
Just like in his previous life, the man who shouted that he would return to China next week brought more than a hundred celebrities from the entertainment industry and various investment institutions to support LeTV.

Then, they cashed out LeTV shares in various ways on the stock market, cashing out 176 billion yuan under various names, and then raised 310 billion yuan by pledging equity. Finally, they sold the equity to Lian Xiangliu's disciple. Their hands were numb from cutting leeks.

But it is this kind of cutting leeks that, when cashing out, LeTV's stock price soars straight away. No matter what the news is, it is interpreted as good news. That is, in the frenzy atmosphere, everyone is scrambling to buy LeTV shares, and they all think that its stock price can rise further!
Right now, the concept stocks of Dongling Hi-Tech, represented by Sichuan Rong Electronics, have not reached that frenzy atmosphere, but the signs of being hot are definitely there. After all, the huge orders issued by Dongling Hi-Tech are there.

The impact of the explosive sales of Shenzhou Electronic Dictionary continues to spread to multiple industries including electronics, technology, and finance.

Not only the Dongling Hi-Tech Supply Chain Company, which has already been listed, but also those manufacturers that have not yet been listed are also facing constant turmoil.

As a company in Dongling Hi-Tech's parts industry chain, Chuanrong Electronics is not even the core one. It is generally recognized that the core suppliers in Dongling Hi-Tech's industry chain are BYD, BOE, Dongxin Semiconductor, and Hanxi New Materials.

These companies are Dongling Hi-Tech, which supplies batteries, screens, chips, and casings. Among them, BYD is the most popular in the market because it can make money. BOE is well-known, but it is still losing money.

BYD, which has not yet entered the car market, has already achieved profitability. It is fully satisfied with all kinds of orders from Dongling Hi-Tech every year, not to mention that companies such as Motorola and HP are also placing orders with BYD.

Since it became famous, securities companies from China and even Hong Kong have come to BYD every year to lobby for its listing.

Other Dongling Hi-Tech parts suppliers, even if not as popular as BYD, are equally sought after.

Although it is not as good as BYD, Hanxi New Materials is one of the earliest manufacturers to become a parts supplier for Dongling Hi-Tech.

From the earliest Silver Sable mouse, to the electronic pet machine, all the way to the current Shenzhou electronic dictionary, more than 70% of the shell materials of Dongling Hi-Tech's various products are supplied by Hanxi New Materials.

Hanxi New Materials' revenue has also gone from being heavily in debt to exceeding 12 billion yuan in the first half of this year. According to the current momentum, Hanxi New Materials may even have a chance to reach the billion yuan annual revenue threshold next year!
As a state-owned factory, the revival of Hanxi New Materials has the potential to become a classic case in Hanxi and even in the country.

Today, when state-owned factories are generally struggling, Hanxi New Materials stands out. Under the leadership of Cao Xueming, it not only overcame the bankruptcy crisis, but also carried out modernization improvements, and its revenue continued to soar.

Now, in addition to providing casing materials to Dongling Hi-Tech, Hanxi New Materials can also provide casing materials to other mobile phone and computer brands because it has its own laboratories and R&D technologies.

In addition to electronic product casings, Hanxi New Materials also has cable and other businesses, which have also been picked up again.

Hanxi New Materials’ revival was inseparable from the first order from Dongling Hi-Tech, otherwise it would have gone bankrupt and would not be where it is today!

The current scale of Hanxi New Materials is much larger than in its heyday. In addition, as a state-owned factory, as long as it wants to go public, it will basically be a sure thing.

In the newly built modern park of Hanxi New Materials, Cao Xueming, the factory director and general manager of Hanxi New Materials, is currently dealing with the public relations manager sent by Hanxi Securities Company.

This is Cao Xueming. He has no idea how many securities company managers he has met this month. These people all come with the same purpose, which is to persuade Cao Xueming to allow Hanxi New Materials to apply for listing!
Cao Xueming avoided those securities companies as much as possible. He did not want Hanxi New Materials to be listed immediately, although many people, including the Hanxi Provincial Government, hoped that Hanxi New Materials could be listed. Once listed, Hanxi New Materials would not be able to develop completely according to the plan formulated by Cao Xueming like it is now. This is not because Cao Xueming is greedy for power.

But he knew that what Hanxi New Materials needed now was to invest in research and development, upgrade production lines, and cultivate talents, rather than rushing to distribute dividends or give bonuses to major shareholders and senior executives.

But if Hanxi New Materials goes public, these matters will no longer be decided by Cao Xueming. He has to return the investors who bought Hanxi New Materials' stocks, and distribute dividends to the major shareholders who acquired Hanxi New Materials' equity. It is impossible for him to follow Dongling Hi-Tech's example and spend a lot of income on research and development as before.

The Hanxi Securities that came this time was a local securities company in Hanxi, so Cao Xueming really couldn't avoid it.

"Director Cao, once Hanxi New Materials goes public, we can raise more funds for better development.

I know you are dedicated to the public, but only by going public can Hanxi New Materials be able to internationalize faster, right? ! "

Shi Yuan, the public relations manager from Hanxi Securities, tried his best to persuade Cao Xueming.

"Besides," Shi Yuan glanced at Cao Xueming, "Director Cao, you have made great contributions to Hanxi New Materials. Without you, Hanxi New Materials would have collapsed long ago!

After Hanxi New Materials goes public, you will also be able to get a share of Hanxi New Materials' equity, so you can better manage Hanxi New Materials in the future!"

Shi Yuan had almost made it clear that those state-owned factories, which were far inferior to Hanxi New Materials, were all trying their best to go public. Why? One reason was to make money, as they needed the money to support the factories.

Another is that for state-owned factories to go public, they need to introduce external investment institutions and carry out equity restructuring, so that factory leaders will have the opportunity to obtain equity.

Only if you have equity can you have the opportunity to share dividends, cash out, and achieve financial freedom. If you don’t have equity, you’ll just be an employee, and when you retire or are transferred one day, you’ll lose everything.

If Hanxi New Materials does not go public and Cao Xueming does not get any equity, then one day he will be transferred away from Hanxi New Materials. Then everything here will have nothing to do with him anymore and he may end up with nothing.

Cao Xueming looked at Shi Yuan. He knew that Shi Yuan was telling the truth, but in the end he still shook his head.

Cao Xueming is a teacher from the School of Management. He is an authentic scholar and a cultural person. People of his generation all have a certain degree of intellectual aloofness. They can be said to be pedantic, but they have their own beliefs.

"Manager Shi, thank you for your kindness, but right now Hanxi New Materials has more important things to do than going public.

As long as I am in Hanxi New Materials, we need to proceed according to the original plan. In addition... Hanxi New Materials and Dongling Hi-Tech have also signed R&D projects. These projects are confidential and should not be made public!"

When Shi Yuan heard Cao Xueming mentioned Dongling Hi-Tech, he was speechless. If the project of Dongling Hi-Tech was really delayed, not only Shi Yuan but also Hanxi Securities would have to bear the blame, and a group of senior executives would be in trouble.

This is not Cao Xueming deceiving Shi Yuan. There are indeed many cooperative projects between Hanxi New Materials and Dongling Hi-Tech.

New technologies and materials such as environmentally friendly plastic materials, aluminum shells, nickel metal shells, carbon fiber alloys, polished mirror technology, integrated body shells, glass materials, etc. are all being developed in Hanxi New Materials' laboratory. Dongling Hi-Tech and Hanxi New Materials are investing large sums of money in the research and development of these technologies.

Seeing Shi Yuan leaving, Cao Xueming sighed. He knew that there were many people and institutions who hoped that Hanxi New Materials would go public and they would make a fortune.

But Cao Xueming did not want Hanxi New Materials to fail, so at the most critical moment, he gave up those technologies and material research and development in order to go public.

In fact, there were rumors long before that Cao Xueming might be transferred and someone else would take over Hanxi New Materials, but in the end, the rumors were suppressed because Dongling Hi-Tech said it hoped to continue cooperating with Hanxi New Materials led by Cao Xueming.

Some people may not care about Cao Xueming, but no one dares not care about Dongling Hi-Tech!

The news that Dongling Hi-Tech's parts suppliers have received huge orders has spread like wildfire. Everyone can see that the sales of Shenzhou Electronic Dictionaries may continue to soar.

Overseas, when people saw that Dongling Hi-Tech was unable to supply the Shenzhou electronic dictionaries on a large scale to meet market demand in a short period of time, the prices in South Korea, Japan, Malaysia and other places went crazy!
In South Korea, the price of a Shenzhou electronic dictionary has been driven up to around US$350.

In Korea, where people pay attention to seniority and status, owning a Shenzhou electronic dictionary seems to be more than just a learning and entertainment device. It has also become a symbol of identity and status, a bit like the Apple computer in the past...

But what attracted the most attention from overseas markets was another piece of news: one thousand electronic dictionaries purchased by an Indian electronics agent were sold out in Delhi and Mumbai in less than one morning!
You should know that the agent in India priced the Shenzhou electronic dictionary at US$128 per unit.

As for how the Indian agents deceived people with their advertisements, it was nothing more than that with a Shenzhou electronic dictionary, one could learn English, have the opportunity to get into university, work for a multinational giant, get into an Indian city government as a clerk, or even enter the upper class, thus changing the fate of cattle and horses and reaching the peak of life. This was enough to deceive Indians and South Asian users into scrambling for Shenzhou electronic dictionaries!
The fact that these machines are selling well in India indicates that Shenzhou Electronic Dictionary has an opportunity to enter the South Asian market. A market with a population of more than one billion has opened its doors to Dongling Hi-Tech!
(End of this chapter)